Trivago (TRVG) – Get the trivago NV sponsored Class A ADR report action jumped on Monday as the easing of Covid-19 travel restrictions helped the hotel and accommodation research platform beat Wall Street’s profit forecast for the third quarter
The company’s U.S. deposit receipts from Düsseldorf, Germany, on the last check were 6.2% higher at $ 2.80.
“Over the past few months, significant progress has been made in controlling the Covid-19 pandemic in many of our most important geographic markets,” Trivago said in a statement.
“Dozens of countries have lifted restrictions on daily living and allowed a return to regular office work, schooling and even major events.”
The company added that travel restrictions are gradually being lifted, “although more slowly than many had previously anticipated.”
Trivago reported net profit of 5.53 million euros ($ 6.4 million), compared with a loss of 2.31 million euros ($ 2.67 million) during the period last year. Earnings per share amounted to 0.01 euro, compared with a loss of 0.01.
Analysts polled by FactSet expected the company to break even.
Revenue was € 138.6 million ($ 160 million), more than double (up 129%) from the previous year and exceeding the FactSet consensus of 130, 8 million euros ($ 151 million).
Sponsorship revenue increased from € 58.3 million to € 136.1 million, the company said.
“With the reopening of transatlantic travel routes in November, almost all relevant western travel restrictions will have been lifted,” the company said.
[“Travel] within and to Asia and Australia remains severely restricted, which has negatively affected traffic volumes in our rest of the world segment. “
Trivago also announced that James Carter will step down from the board at the end of the year. He will continue as an advisor on strategic and technical matters and will step down from his current operational responsibilities in the first half of 2022.